The time for Chile hydrogen opportunity-building 'is now'

For prospective green hydrogen industry suppliers interested in Chile, the time is ripe to build and develop opportunities, a specialist European midstream company tells BNamericas. 

Green hydrogen is in the nascent phase in Chile, where efforts today are centered on planning and getting the first large production projects from the drawing board to construction, which will chiefly hinge on developers successfully securing offtake agreements. 

Logistics infrastructure will also need building and adapting to get hydrogen and its derivates transported, particularly in isolated far south Magallanes region, where projects are focused on serving the export market and national oil company Enap has announced public-private maritime terminal adaption projects.

Robert-Jan Berg, managing director of Dutch flexible pipeline solutions company SoluForce, told BNamericas during a logistics-oriented trade mission to Chile that his visit was geared to developing the foundations for potential future deals.  

“That’s why I’m here now at the table, when all the plans for infrastructure are being developed,” Berg said. “In terms of business opportunity and increasing your business opportunity, I think the moment is now.” 

Actual deals are expected to be signed and sealed from 2025, he added.

Offering flexible pipeline solutions for oil, gas and water, SoluForce has more than 20 years of experience carrying out projects, including in challenging physical environments such as mountain regions, forest areas and deserts. Berg said this knowledge and know-how could be leveraged in Chile, where the two prospective investment hubs are barren and windswept Magallanes and arid northern region Antofagasta.    

“The unique selling point of our product is that it’s a flexible pipe that adapts quite nicely to the regions,” Berg said. “A lot of transport infrastructure still needs to be planned and needs to be constructed, so I do see huge potential for our product here.” 

Easier and faster to install than steel pipe, and with a smaller carbon footprint, SoluForce’s solution is already certified for hydrogen applications up to 52 bar of operating pressure. The company is actively working to increase the certified operating pressures to as high as 100 bar in the near future to enable storage-related applications, among other uses. SoluForce is also working to certify the product for carbon dioxide – used in e-fuels production – and are testing the pipe with ammonia.

The green hydrogen trade mission was the third of its kind between Chile and the Netherlands, home to major ports and multiple companies with logistics and infrastructure expertise and capacity. Both governments are fostering collaboration among companies to develop joint projects. 

Dutch trade delegates from across the midstream value chain met with local stakeholders from Magallanes and Antofagasta region industrial hub Mejillones. The trade mission was jointly organized by business-development body Netherlands Enterprise Agency and the Dutch embassy in Chile, with the support of the Chilean energy ministry, investment promotion agency InvestChile, export promotion agency ProChile and bilateral chamber of commerce Holland House Chile. Marcelo Villagrán, a former trade commissioner at the Chilean embassy in the Netherlands, was also part of the organizing team.

CHILE PRODUCTION PROJECTS

More than 50 hydrogen projects have been announced publicly in Chile, the bulk by capacity and investment targeting Magallanes and Antofagasta, which is also home to potential industrial and residential sector offtakers.

Two projects, one targeting the domestic market and the other export-focused, are in the environmental review phase. All eyes will be on the progress of projects through the environmental and social review procedure, which often comes under fire for being complex and lengthy but has undergone some tweaks in preparation for the nascent hydrogen wave. Reform bills to speed up permitting have been announced but not yet submitted to congress.

By the end of the decade, Chile is expected to have a green hydrogen derivatives exporting industry in place.